Lets not be so fast in putting the blame on Funakoshi. if you feel karate is not what it originally was lets put the blame where is belongs, on the Americans.
JCS: Documentation Regarding the Budo Ban
prior to WW2 martial arts were turned into a militaristic war effort. however after the war the American occupation agreements banned all martial arts.
"October 22, 1945, the Supreme Commander Allied Powers (SCAP) notified the Ministry of Education that "dissemination of militaristic and ultranationalistic ideology will be prohibited and all military education and drill will be discontinued." Two months later, on January 4, 1946, SCAP issued Directive 550, which, with its companion Directive 548, required "the removal and exclusion from public life of militaristic and ultra nationalistic persons." One result of these orders was that the Ministry of Education eliminated martial arts from school curricula and another was that the Dai Nippon Butokukai was closed."
the only way to bring martial arts back was to make it competitive sport and "remove all Budo" from the practice.
the next major hit to martial arts was and is the "Wussification of America". maybe it started in the late 80's and early 90's where litigation happy folks would take every opportunity to take karate schools to court. students now needed to be fully padded and no contact during sparring. the full contact karate-ka like Chuck Norris, Bill Wallace and Joe Lewis gave birth to pro full contact PKA style fighting. which quickly died under the weight of parents wanting little Johnny to learn self controll and be a better student in school. Doctors who advised little Johnny take karate to help his ADHD. and still today we find ourselves in conflict between teaching a fighting art and the anti bully, anti confrontation mind set that has its grip on the country.
there is one bright spot on this >>>>>MMA. yes that "human cock fighting, that appeals to the lowest common denominator in our society," thanks John Mcain.
as a backlash to the void of true combativeness in martial arts MMA was born and in return has woken everyone up to what martial arts should be.
I named Funakoshi because even he admitted to changing the focus from how he trained at night in Okinawa versus how he taught in schools.